If interest rates go up like predicted, there will be no RE’s left to PIP.
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I retired today. Super happy. Just dropped of my lump sum check To my financial planner. Martini lunch. Did the math, happy to go. The end ..,
Listen, you can’t expect someone who worked at ExxonMobil for a whole career to suddenly “do the math”
Today (meaning Q2 2022) the segment 2 interest rate (key influence on lump sum calculation) is 2.72%. Each 1% of this rate is 10% or more of the lump sum (depends on salary).
If the rate goes up to the average of the last ten “normal” years (2010-2019, after the financial crisis and before the pandemic) that’s 3.9%, so 12% less in the lump sum compared to today.
But now the inflation is high; the last time there was a bout of higher inflation - nowhere as high as now - in 2010, the rate was around 5.25%. That would take out at least 25% of the current lump sum value. But if the inflation keeps growing, the interest rate could go even higher. Trying to keep working so that the salary would compensate for a deflating lump sum would be a total gamble. Not to mention that for any normal worker you have to add the risk of being PIPed this year or next year, in other words higher or very high interest rate and no salary to compensate for it.
Any RE who can do a bit of math - and is not sponsored - is likely to retire on June 1st. Goodbye EM, not a moment too soon.
This is a fact - I didn't know it was that much money down the ho-e for 1% change.
Would be multiple salary years equivalent for a 60 yo./35 EM.
And forgive the Dirty Wrench dude below thinking this was a CSR hit-post.
The good thing:
His life expectancy is pretty low - won't make it to retirement.
Bottle (or shotg-n) always leveled on his teeth.
Fatty liver.
Check the announcements board. Many retirements by those who have done the math.
Lump-sum payout decreases by 10%-15% for 1% increase of interest rate. JPMorgan Economists Expect 9 Consecutive Fed Rate Hikes. Do the math.
Even though f 10% of employees retire, 8% will get PIP’d.
“The beatings will continue until Morale improves” - DW
Oh I thought you meant CSR that Clown Car crowd in Annandale, when will this waste of money end, Technician’s and Technical leaving weekly….
Fine by me, I'm 50 so come make me an offer I can't refuse 😁😁😁😁😁😁😁😁😁😁😁😁
Maybe just PIP all of Corporate Strategic Planning.
There is nothing for that Clown Car crowd to list as an accomplishment.
That is the group that planned an LNG import terminal while simultaneously planning enough gas development to require export.